8.75 would be fine to it's only a difference of 3 inches.. Are you going to do up lighting? In the second picture that ceiling is really set up for it and that opens up a lot of options on your finishes and textures on the ceiling.

Cornerstone Design, Thanks for your response. The electrician and false ceiling folks I've engaged are very competent, and are going to take care of installing the ceiling fans (of any type or kind I buy). My only task is to find and procure appropriate fans. Regarding the loss of about 10" due to the false ceiling: I only did a simple rectangular tray drop design for lights (approx 4-6"); however, the original ceiling was not straight, and approx 2-3" extra went in straightening it at the tray edges. Since the ceiling seems (perceived) low, I do not want to make it look lower visually. I am looking for fans that will be as close as possible to the false-ceiling without effecting its sweep functionality or energy efficiency. Any suggestions on where I can get good ceiling fans in Bangalore (all brands and varieties under one roof)? I would also like to see/consider the options you've mentioned (special fan like flush fan or ceiling swing fans). Where can I see/procure these in Bangalore? Thanks!

Nadia, You need to provide some more snaps showing the entire room, including the location of the beam, its height & clear height of the slab etc. One idea could be to extend the width of the beam by just about 25 mm with gypsum board on either sides, at the bottom level, with a right angular vertical of 25 mm as well & provide LED lighting strip for indirect lighting...

what is the recommended height required when we want to opt for false ceiling? Answer : ( 8'-6" below false ceiling...) 2) what are the pros and cons with false ceiling? Answer : Advantage is... 1) If ur staying below terrace flat, False ceiling will to reduce heat. 2) To hide electrical wiring conduit pipes which will hide inside the false ceiling. 3) to hide any electronic devices inside the false ceiling, by using trap door, to service the wiffi, telephone, router, etc. 3) how much does it will cost for 1400 sft 3bhk? Answer : ( 2 Option ) 1 Option ) 1400 is not totally will be used for false ceiling, i hope except balcony, bathrooms, etc here it is not necessary, so asume only 1100 Sq.ft Carpet Area = 99000/- Flat ceiling. 2 Option ) Additional design ( Up / Down - level difference for Cove Lights ) Asume 35000/- Total Cost = 1,34,000=00 4) is it only for aesthetics purpose or any functional advantage? Answer : Both as Explained Above. 5) how much overhead interms of maintenance? Answer : No Maintenance Cost, If not damaged by water. 6) any alternatives for false ceiling to get good lighting and rich look? Reflected Cove Light which is mentioned in Sr.No. 3 ( option 2 ) Additional Cost